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He said that while NSW families were paying about $85 to fill up
the average family car, Queenslanders were paying $10 less to fill
the same sort of car.

He said the Queensland Labor Government's 8-cents-a-litre
subsidy on petrol was paid out of GST payments "stolen" from NSW
and diverted to Queensland.

"A Queensland family with a standard Holden Commodore pays more
than $500 a year less for petrol courtesy of NSW taxpayers," Mr
Carr said.

"We have just experienced the highest petrol prices ever seen in
NSW - higher than during the first Gulf War. In fact, on April 13,
it reached $1.55 a litre at Manning Point on the Mid North
Coast.

"It is illogical and unfair for the Federal Government to
continue to take money from NSW so Queensland can subsidise their
petrol by 8 cents a litre. The 2004-2005 Queensland Budget papers
make it clear that NSW families are providing a $511 million a year
gift to Queensland motorists."

With stakes running high in the tax war between Sydney and
Canberra, Mr Carr is focusing on petrol prices to rally public
support.

He reiterated the battle cry that the Federal Government
collected $13 billion of GST a year from NSW, but only gives $10
billion a year back.

"The remaining $3 billion goes to other States, including $829
million to Queensland, and that $829 million helps the Queensland
Government to subsidise petrol."

However, Mr Costello's trump card is the Federal Government's
absolute control of state funding, and he has already secured the
agreement of six states and territories to reduce some state
taxes.

Only NSW and Western Australia have refused to sign up, with Mr
Costello accusing NSW of "double dipping" because it wants to keep
its level of GST funding and stamp duties and other land taxes.

He said the deadline for the GST review was in "a few weeks" at
which point he would make an announcement if NSW and WA had not
signed up.